Tax Policy and Entrepreneurship: New Time Series Evidence

Tax Policy and Entrepreneurship: New Time Series Evidence
Bruce, Donald; Mohsin, Mohammed
2005-04-15 00:00:00
Have tax policies affected entrepreneurial activity in the U.S.? We extend the time series literature on this topic by using more recent data and modern econometric techniques to examine the importance of federal income, payroll, capital gains, corporate income, and estate taxes on self-employment rates. Regression results show that most of these taxes have significant but small effects on self-employment activity. A battery of cointegration and causality tests confirms the general finding that taxes can have significant influences on entrepreneurship, but they are likely to be ineffective tools for generating meaningful changes in entrepreneurial activity.
http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.pngSmall Business EconomicsSpringer Journalshttp://www.deepdyve.com/lp/springer-journals/tax-policy-and-entrepreneurship-new-time-series-evidence-jGusVRfXpi

Abstract

Have tax policies affected entrepreneurial activity in the U.S.? We extend the time series literature on this topic by using more recent data and modern econometric techniques to examine the importance of federal income, payroll, capital gains, corporate income, and estate taxes on self-employment rates. Regression results show that most of these taxes have significant but small effects on self-employment activity. A battery of cointegration and causality tests confirms the general finding that taxes can have significant influences on entrepreneurship, but they are likely to be ineffective tools for generating meaningful changes in entrepreneurial activity.

Journal

Small Business Economics
– Springer Journals

Published: Apr 15, 2005

Recommended Articles

Loading...

References

‘A Time-Series Analysis of Self-Employment in the United States’

Blau, David M.

‘Taxes and Entrepreneurial Endurance: Evidence from the Self-Employed’

Bruce, Donald

‘Effects of the United States Tax System on Transitions Into Self-Employment’

Bruce, Donald

Tax Policy and the Economy 15

Carroll, Robert; Holtz-Eakin, Douglas; Rider, Mark; Harvey Rosen, S.

‘The Evolution of UK Self-Employment A Study of Government Policy and the Role of the Macroeconomy’

Cowling, Marc; Mitchell, Peter

‘Distribution of the Estimators for Autoregressive Time Series with a Unit Root’

Dickey, D. A.; Fuller, W. A.

‘Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root’